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Budget 2026 Drives Reform with Focus on People, Tech, and MSMEs

The Union Budget 2026-27 is seen as sustaining reform momentum with a people-centric approach, balancing fiscal responsibility with growth investments. It emphasizes building resilient domestic capabilities in strategic sectors like semiconductors and rare earths to reduce import dependence. Significant measures to support 'Champion MSMEs' through funding and skill development aim to boost employment and regional economies. The Budget also proposes a major banking sector committee and tax incentives to strengthen India's position as a digital and financial hub.

Key Points: Budget 2026: A People-Centric Reform Push for Viksit Bharat

  • Adheres to fiscal deficit glide path
  • Boosts semiconductors & rare earths
  • Champions MSMEs with equity & liquidity
  • Tax incentives for digital infrastructure
  • Major banking reform committee proposed
2 min read

Budget sustains reform momentum through people-centric approach: KPMG in India CEO

KPMG India CEO analyzes Union Budget 2026-27, highlighting its focus on fiscal discipline, tech sovereignty, MSME growth, and BFSI reforms.

"presents a clear and confident vision of the Government's commitment to building a developed India - Yezdi Nagporewalla"

New Delhi, Feb 2

The Union Budget 2026-27 sustains reform momentum through a people-centric approach focused on stability, inclusivity, and long-term value creation, Yezdi Nagporewalla, CEO, KPMG in India, said on Monday.

The Budget presents a clear and confident vision of the Government's commitment to building a developed India, one that effectively balances fiscal responsibility with ongoing investment in growth, resilience, and inclusion.

"Adhering to the fiscal deficit glide path, even amidst global trade and supply-chain challenges, underscores the robustness of India's macroeconomic fundamentals and policy credibility," he said in a statement.

Moreover, the emphasis on advancing strategic and emerging sectors, such as ISM 2.0 for semiconductors, a long-term strategy for rare earth ecosystems and tax break for hyperscalers investment in India, reflects a deliberate effort to transform potential into tangible outcomes through resilient, high-value domestic capabilities, Nagporewalla mentioned.

These steps are essential for decreasing import dependence and bolstering India's role in global value chains, he noted.

Furthermore, the focus on developing 'Champion MSMEs' through equity infusions, liquidity support, and professional assistance is highly promising.

The SME growth fund, along with targeted compliance and skill development measures, is poised to help enterprises key to employment generation and regional economic progress-realise their aspirations, he mentioned.

Incentives like the tax holiday for global cloud and data centre services further strengthen India's position as a reliable digital and technology hub.

Sunil Badala, National Head of Tax, KPMG in India, said the Budget delivers a strong, forward‑looking push for the BFSI sector, indicating the government's commitment to financial stability, deeper capital markets, and simplified tax administration.

"The proposal to set up a High‑Level Committee on Banking for Viksit Bharat marks a major structural reform, aimed at strengthening governance, enhancing financial resilience, and better aligning credit delivery and inclusion with India's next phase of economic growth," Badala added.

Overall, Budget 2026 strengthens governance, deepens markets, and reduces compliance burden-positioning India's BFSI sector for a more competitive, globally aligned future, he said.

- IANS

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Reader Comments

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Priya S
The emphasis on fiscal discipline is commendable, especially with global uncertainties. However, I hope the "people-centric approach" translates to more immediate relief on the ground, especially for middle-class families facing high costs. The vision is clear, but execution is key.
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Aman W
Tax breaks for data centres and cloud services? This is a masterstroke! Will attract huge foreign investment and make India a true tech hub. Future-ready budget for sure. 👏
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Sarah B
Reading from an international perspective, the commitment to the fiscal deficit path is what global investors watch closely. It signals stability. The focus on rare earths and semiconductors is strategic for reducing supply chain risks. India is positioning itself wisely.
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Karthik V
All these committees and long-term strategies sound great on paper. But as a small business owner, what I need is simpler GST compliance and easier access to credit *now*. Hope the "SME growth fund" reaches the actual small enterprises and doesn't get stuck in red tape.
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Nisha Z
Building domestic capability in rare earths is crucial. We have the resources, we need the technology and investment. This, along with semiconductor push, is true atmanirbharta. Good forward-looking budget.

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